ADMINISTRATIVE REPORT
MEETING DATE: March 26, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic & Community Development Director DATE: March 12, 2025
SUBJECT: Termination of EOA Grant Agreement 2024-039 with The Bakersfield Sound Co. ($49,000)
(Ward 2)
RECOMMENDATION:
Staff recommends termination of the grant agreement.
BACKGROUND:
The Economic Opportunity Area (EOA) Incentive Program offers incentives to encourage business growth and redevelopment with financial assistance, such as grants and development assistance, for a business or non-profit within an EOA or planning to open or expand within an EOA.
The Bakersfield Sound Co. was recommended for a grant award of $49,000 for rental reimbursement assistance for their new business location at 1018 18th Street within the Downtown EOA. The financial support would create multiple new full-time jobs and support other economic activity. On February 14, 2024, the City Council approved Agreement No. 2024-039. To date, The Bakersfield Sound Co. has received $40,000 in rental reimbursement support for the period from December 2023 to September 2024.
Staff were made aware and Bakersfield Sound Co. confirmed that they relocated their business to 10715 Rosedale Highway, outside of the Downtown EOA and outside of city limits. Sections 6 and 22 of Agreement No. 2024-039 include specific requirements that the business be located within the EOA and in operation at the location for at least one year to be eligible for grant funding. Therefore, due to the relocation of the business to 10715 Rosedale Highway prior to one year of operations, and given the terms of Agreement No. 2024-039, Staff requests the City Council to terminate Agreement No. 2024- 039.
FISCAL IMPACT:
There is no impact on the General Fund. The remaining $9,000 in funds will be reallocated to other eligible EOA projects.
COUNCIL GOAL:
Innovative and Efficient City Government
WARD: 2
ATTACHMENT:
Termination Letter